Industry or living space? Future of area south of bridge in flux

Sunday

Jun 16, 2013 at 12:30 PM

Once envisioned for the mixed-use Gateway Project, the land might return to industrial and light-industrial zoning

By Julian MarchJulian.March@StarNewsOnline.com

When motorists drive over the Cape Fear Memorial Bridge into Wilmington, they have a sweeping view of the downtown riverfront, with boats, buildings and a backdrop of church steeples.But their eyes may not be drawn to the southeastern side of the bridge – the vacant, 7-acre site of a former molasses plant that one planning commission member dubbed an eyesore.On Tuesday, the city council will consider a request to return the land – once envisioned for the mixed-use Gateway Project – to industrial and light-industrial zoning. The proposed rezoning, which has already been questioned by neighbors, could also raise concerns about whether it could threaten a resurgence of residential housing just south of the bridge.In April, the city's planning commission failed to give the project a favorable recommendation – in part because some members were concerned about authorizing the zoning without knowing what exactly would go on the site.Council has the authority to formally approve or deny the request.

For decades, the land at 610, 712 and 732 Surry St. was zoned industrial.In 2008, the land was rezoned as riverfront mixed-use to accommodate the Gateway Project. Developers envisioned an 11-story complex along with 260 condominiums, a restaurant, 40 boat slips and retail space.Eventually, the project fell victim to the area's real estate slump, and the land sat vacant. It was foreclosed on in 2010.Michael McCarley is the registered agent for Riverman LLC, which bought the land in June 2012. McCarley is also the president of Carolina Marine Terminal, a shipping facility at 3330 River Road.After he bought the land, McCarley then asked the city to rezone nearly 1 acre at 610 Surry St. as light industrial. The zoning would allow uses such as offices, distribution or warehousing. McCarley also wants the city to rezone more than 6 acres at 712 and 732 Surry St. as industrial.

While the owners say a rezoning could allow them to redevelop the property, they don't know – or aren't saying – what would be built there.When the project appeared before the planning commission in April, Andrew Tomlin, a project manager for Riverman LLC, said the landowners have no specific plans for the site. But they have had the river dredged to deepen the channel and make it more suitable for shipping."We would like to see it go in that direction," Tomlin said, though he added, "There are no guarantees …"McCarley did not return several messages left at his office last week.Several neighboring property owners have said they have concerns about the proposed industrial rezoning, ranging from what would go on the site to how it would affect nearby homes.Echoing those concerns, some planning commission members seemed reticent about allowing a rezoning without knowing what it would bring."They're asking too much with too little information," said Dan Dawson, who voted against recommending the rezoning.Yet Bruce McGuire, another commission member, countered that the land is an eyesore and the city should trust free enterprise.City council members discussed the proposal at a May 6 agenda briefing. (Although the rezoning appeared on the agenda, it was continued at the applicant's request.)Councilwoman Laura Padgettexpressed concerns about the consequences of a straight rezoning with no conditions."We could wind up ending up with something extremely detrimental to the Historic District that actually abuts this site," she said.The land is so close to the Memorial Bridge, you almost need earplugs, said Councilman Charlie Rivenbark. Of the bridge, he said, "If that's not a physical barrier, it's a mental barrier between one intense use and the Historic District."Mayor Bill Saffo agreed that bridges can act as a line of demarcation."We have a working riverfront," Saffo said last week. "And the working riverfront seems to be south of the Memorial Bridge along the river and north of the Holmes bridge along the river."The mayor said he always doubted whether the Surry Street land would be suitable for residential, adding that he feels it is more conducive to light industrial.

In the past several years, there has been a resurgence in the South Front Street area just south of the Memorial Bridge.In December 2009, Satellite Bar & Lounge opened its doors on Greenfield Street, occupying a building that once served as a grocery for the shuttered Nesbitt Courts public housing project. In 2010, The Harp, an Irish pub, opened in a building that had sat vacant for five years.And in 2012, vacant Nesbitt Courts was replaced by South Front Apartments with 216 modern units, which are currently 97 percent full, said Bailey Schiffel, the community's director."We have a lot of residents who move here because it is close to downtown," she said, adding that residents also flock to The Harp and Satellite, which are within easy walking distance. "I can only speak to our experience, but we've been very successful here."The South Third/Greenfield Street location for The Harp made sense to owner Margaret Jennings because of the convenience to downtown. Plus, with a limited amount of land available in Wilmington, she figured that people would eventually see the importance of focusing on this space. "I believe in the area," Jennings said. "That's why we came here."Less than three months ago, the entire block of South Front Street between Dawson and Wright streets was put up for sale. It's 2.6 acres in total, most of it vacant.RJ Alex, a broker with Century 21 Sweyer & Associates, initially listed the property as commercial. Last week, he said it could be rezoned residential, and that he was considering listing it with other residential properties."I think there definitely would be a need for more downtown housing," Alex said.But would allowing industrial zoning for the Surry Street land spell an end for more residential housing and redevelopment south of the bridge?Not according to Saffo."I don't think it hurts any of the redevelopment efforts that would be east of Front Street, going up to Third and Fifth," the mayor said. "I think more people would like to live there because it's close to downtown and it's convenient."Ultimately, Saffo said the concern from council about the rezoning seems to be what specific uses would be allowed in the area. Industrial zoning could allow anything from chemical products to boat building to a crematory.Saffo said McCarley told him he doesn't have any immediate plans.